Wednesday, August 27, 2008

Scrap metal exporters saw an 80 per cent decline in sales during the four months to April 30 this year when compared to the corresponding period last year. Due to government clampdown on the industry, earnings over the period dropped from US$47.8 million to US$9.4 million, according to the Bank of Jamaica (BOJ).

Last November, Industry Minister Karl Samuda temporarily shut down the sector stating that manhole covers, telephone cables, pipes and other public utilities were being stolen in order to obtain metal for resale.

As a result scrap metal exporters were forced to register with Jamaica Trade & Invest and obtain a licence from the Trade Board. Also the Customs Department was given responsibility for overseeing the packing of containers. In June, Samuda again prohibited the export following continued theft of equipment. This time $3.4 million worth of pipes and iron gates rails belonging to the National Water Commission were stolen.

Samuda had projected the scrap metal industry to earn some US$200 million this year from exports.